Chairman of Hanoi People's Committee Nguyen Duc Chung has formally signed the memorandum of understanding for the organization of the Formula 1 race for a ten year period, taking place in 2020.
The contract will be valid for 10 years with extensions available from the 8th year. Despite being the host, Hanoi People's Committee has assigned Vingroup Corporation to be the exclusive sponsor of the Formula 1 (F1) Race. Accordingly, the money to organize F1 will not come from the state budget.
Vingroup has signed a deal to host the Grand Prix, accepted by Formula 1. Vietnamese Grand Prix would be responsible for coordinating with the design and construction agencies as well as Formula 1 to build the race track for the upcoming 2020 season.
All expenses to host the racing event will be paid to Formula 1 by the Vietnamese Grand Prix, established on August 21, 2018, with the charter capital of $42.9 million by VinFast Manufacturing and Trading Company Limited, the Vingroup’s subsidiary.
The race would be hosted in My Dinh sports complex in South Tu Liem district with a race track of 5,565 meters, designed by German firm Tilke. The track will be the world's first combination of the existing traffic roads and a part of the planned area of the My Dinh sports complex.
"The race track in Hanoi is unique in the world with half of it being on existing streets and the other half to be built," Nguyen Duc Chung, chairman of the Hanoi People's Committee said.
As quoted by Formula 1 website, Chase Carey, Chairman and Chief Executive, Formula 1 said: "This is the perfect formula for Grand Prix racing and I look forward to this becoming a real highlight of the F1 calendar."
"Our Motosport team, working in collaboration with the City of Hanoi and promoter Vingroup, has worked to enable a circuit that will not only test the drivers but also ensure that our fans enjoy the racing spectacle. We are really looking forward to seeing Formula 1 cars speeding around the streets of this fantastic city from 2020,” he said.
The estimated revenue comes from tickets for services provided to F1 and racing teams, advertising services in the whole race, events on the sidelines racing and support of domestic and foreign enterprises.
Nguyen Viet Quang, Vingroup's Vice Chairman and CEO said: "More jobs will be created, the infrastructure of Hanoi will be upgraded, and other bigger worldwide events will be encouraged to take place in Vietnam."
"Through the F1 racing event, we are going to proclaim the first Vietnamese car manufacturer, VinFast, to millions of audiences in the world," he said.
According to the Hanoi's leader, it’s a further demonstration of Vietnam’s ability, as one of the fastest growing economies in the world to host events on a global scale and attract tourism to the country.
"It provides an opportunity for inward investment to Vietnam and importantly to bring the exciting wheel to wheel racing of Formula 1 to the people of Vietnam,” Chung added.
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